Adair Turner, the chairman of the UK’s Financial Services Authority, member of the BoE’s Financial Policy Committee, set out the fundamental cause of the financial crisis in his speech to the South African Reserve Bank on Friday 2nd Nov 2012:

“The financial crisis of 2007/08 occurred because we failed to constrain the private financial system’s creation of private credit and money.”

This is something what we’ve been saying for over two years: that if we allow banks to create money effectively out of nothing, in the way that we’re doing at the moment, then sooner or later we’re going to end up with a financial crisis, debt crisis and the situation that we find ourselves in today.

But this, coming from a chairman of FSA, is the clearest explanation of what is going wrong with our current economic system that has ever come from one of the people who are in charge of regulating the system.

“…the existence of banks as we know them today – fractional reserve banks – exacerbates these risks because banks can create credit and private money, and unless controlled, will tend to create sub-optimally large or sub-optimally unstable quantities of both credit and private money.

“The impact of fractional reserve banks is thus to make the financial system and the overall economy inherently more vulnerable to instability, creating risks which have to be balanced against the economic advantages which can arise from the risk pooling and maturity transformation which banks perform.”

The banking system can thus create credit and create spending power – a reality not well captured by many apparently common sense descriptions of the functions which banks perform. Banks it is often said take deposits from savers (for instance households) and lend it to borrowers (for instance businesses). But in fact they don’t just allocate pre-existing savings; collectively they create both credit and the deposit money which appears to finance that credit.

Thus banks can create credit and private money.

He also references to the work of Prof Richard Werner, who is a member of Positive Money’s Board of Advisors, and with whom Positive Money has made a joint submission to the Independent Commission on Banking that recommended the implementation of full-reserve banking for the UK.

“Werner is one among few modern economists who have focused on describing and thinking through the implications of the fundamentals of bank money creation, in the same fashion as did earlier economists such as Irving Fisher or Henry Simons.”

Adair Turner then goes on to look into the early Full Reserve Banking proposals (Chicago Plan):

The answer the early Chicago’s theorists gave us was ‘very radical’– so radical indeed as effectively to abolish leveraged maturity transforming, fractional reserve banks.

Thus in the Chicago Plan and other variants of 100% money banks (Exhibit 24) no private money is created since no private credit is extended, but instead all money in circulation derives from public debt or money issuance.

Essentially this would mean that banks which provided money services would face a 100% liquid assets requirement: while any institutions which made loans would face a 100% capital requirement, and could hold no deposits a set of prudential requirements which certainly makes Basel 3 look a pretty weak package.

But extreme though it is, there are modern economists who believe that the Chicago Plan is a feasible model for real world policy. Indeed in an IMF working paper published in august this year, entitled ‘The Chicago Plan Revisited’ Jaromir Benes and Michael Kumhof have argued that a transition to a 100% money banking system is both desirable and possible, and that it could and should be accompanied by a dramatic write-down of existing household debts, removing in one fell swoop the vulnerability to financial and macroeconomic instability created by high levels of household leverage.

Although Adair Turner is not convinced that we could or should move away from fractional reserve banks, he thinks “we should take their ideas – rooted as they are in theoretical clarity about the origins of financial instability – as a spur to radicalism in our response to the financial crisis.”

“If we really have constructed an economic system in which adequate nominal demand growth is only attainable with a continual upward creep in the level of debt to GDP, we have created a dangerous system and should seek to identify less risky ways ensure that demand is adequate.”

I suppose having a BOE governor who accepts some basic facts of reality (banks create money, banks create too much money and cause financial crises etc.) is better than having one who chooses conventional economic “wisdom” over said basic facts of reality. But having quickly read through his speech, I’m still left wondering what sorts of concrete policy measures Adair Turner actually has in mind (given full reserves are being rejected…) and am still skeptical of the idea that anything based on higher “capital adequacy ratios” or whatnot will actually work.

Does Adair Turner accept the reality of an endogenous money supply, or does he still buy into the erroneous “money multiplier” stuff you’ll find in undergraduate economics textbooks? His goldsmiths example in this speech would seem to suggest the latter. I’d like to see somebody actually pin him down on this…

Also – and this is hardly a trivial point – I am skeptical of the idea that maintaining “adequate nominal demand growth” and maintaining a habitable planet for future generations are in fact compatible goals. Is it too much to ask to have a potential BOE governor (and current Chairman of the Committee on Climate Change no less!) willing to question the dogma of perpetual economic growth on a finite planet? Plus if peak oil theorists like Richard Heinberg are right then the age of growth is essentially over anyway and it would be prudent to start preparing for a contracting economy – a good starting point here would be to design a financial system that doesn’t crash your economy the second it stops growing!

So
…If you can raise £50 million pounds (what is needed
to start a bank) then really you’ve raised infinity of money, because
you have the power to just create imaginary money at the expense of your
countries value.
The
government is so dumb to hand this power over to anybody, after all a
bank could literally strip the value from the country, just like a
takeover company asset stripping. Realistically, this could be the new
warfare and Conquering of countries in the
modern day. Think how many foreign banks there are
in this country, they could just go mad and offer mortgages galore
knowing they are devaluing a country. Who knows, some genius could have
had this plan 10 years ago and is working towards the downfall of
westernised countries, in order to bring the rising of the struggling
nations and change the power of the world? Just a thought.

We also need a government that runs it’s country like a business, competing and trading with the other countries, The Uk government does not seem to get to grips with the long term problems, maybe that because they only get a small window of power, but there should be better advisories for all parties.

43 minutes ago · Like

http://www.facebook.com/Stephannie.Roxanne.Clifton Stephanie Clifton

I’ve had an idea to solve immgration problems and maybe economical. Citizens of a country should be seen as “Bonds”.

If one Citizen emigrates to another country for asylum for instance,
that person sacrifices his/her Bond to the country the come from the the
country they are going to. Ie Isreal to Australia.
If Australia holds a greatest share of bonds, then they have conquered that country an
d will hold power and ruling to it.
This would step up the game and make sure governments looked after its Citizens.

It would also encourage the Governments to make their countries more
appealable to attract immgration. It will also elimate the fear of not
being able to support its Citizens as the countries would inherit the
wealth of the other countries too.
Then the best government will be elected by footfall and would have the right power over the world.

Breathtaking and hypocritical at the same time. Saying what we have all known about for 20 years and still doing nothing about it. I am left speechless than any regulator still has a job. If the rest of us were as negligent at our won work we would be fired.

http://www.facebook.com/profile.php?id=100001572308913 Ashley Smith

Breathtaking and hypocritical at the same time. Saying what we have all known about for 20 years and still doing nothing about it. I am left speechless than any regulator still has a job. If the rest of us were as negligent at our won work we would be fired.

For almost two
decades we have strived to get justice for the injustice we have
suffered at the hands of a world renowned bank— PICTET & CIE.
BANK.

Two yorkshiremen
both running their own small family businesses trying to resolve the
problem by taking all the correct legal procedures to recover their
monies.

The matter was
raised in Parliament – twice– the FSA investigated the matter
concluding that PICTET had rogues operating in their London Bank —
but the rogues had left —saying no one left to prosecute.??? —–
so there.

We then
approached the Financial Ombudsman Service. (FOS) — our case was
dealt with by seven different people —- then our numerous E-Mails
were ignored — nobody would speak to us ——-so there.

We then asked the
SFO ( Serious Fraud Office.) to investigate our case —- the
criteria of our case ticked all their boxes. — we were instructed
not to send them any documents/evidence.—— in fact they wrote to
us advising us to go to the Citizen’s Advice Bureau.(CAB.)

Richard Alderman
the SFO boss —- who responded to our letter was the same man who
would not investigate the “ Madoff” scandal or the “Libor”
fiasco.

The MP’s
committee —- said he was sloppy— and the SFO was run like “
Fred Karno’s Circus” —– it was an office of fraud.—– so
there.

Our M.P.
approached our local Chief Constable to investigate—– he was
called—- Sir Norman Bettison— Chief Constable of West Yorkshire
Police —- a force that made “ Dad’s Army” look like the S.A.S.
They were inept – corrupt —malicious — from top to bottom. We
were criminally dealt with by the Forces Solicitor—- the Head of
the Economic Crime Unit —-and the Chief Constable —– so there.

We were then
advised to pass our complaint against West Yorkshire Police to the
I.P.C.C. – which we did — they advised us to make our complaint
to —- the West Yorkshire Police — we did with reluctance — all
we got was abuse and obfuscation. —– so there.

Sir Norman
Bettison —- The Forces solicitor— and the Head of the Economic
Crime —- have all been removed from their posts and facing criminal
allegations.

—— so there.

We even sought
justice through the Courts — culminating in a visit to the Court of
Appeal-London.— On leaving the Courts of Appeal that day our
barrister a “rising star” informed us — that if that was
Justice then you can keep it. He quit the law and moved to Canada
—– so there.

A few years later
we learned that one of the judges in our case at the Court of Appeal
was related to a senior executive of the Pictet Bank —–so there.

Pictet & Cie
.Bank — voted private bank of the year 2013.

Ivan Pictet —-
Voted banker of the year 2012. —- the senior partner — lied on
numerous occasions and had documents destroyed — also said genuine
documents were forgeries. —– so there.

Ivan Pictet in
Oct. 2013 —- Given the Legion of Honour — but saying that —-
honours were given to Hitler — Eichmann — Mussolini —Franco
— he’s in fitting company. —-so there.

Monty
Raphael.Q.C. along with Ivan Pictet withheld crucial documents
requested by the High Court —- the FSA —- and the police Fraud
Squad. —-so there.

Monty
Raphael.Q.C. became an Honorary Queens Counsellor in March. 2012.

Monty
Raphael.Q.C. became a Master of the Bench in Nov.2012.

An expert in
Fraud —the Doyen of Fraud Lawyers. —– so there.

This says a lot
about Banks — the consensus of opinion is that they are highly paid
“crooks” —- no wonder they voted Ivan Pictet banker of the
year.

It appears that
crimes in the “establishment.” are honoured by their peers.

“HONOURS
AMONG THIEVES.”

Full Story.—-
“google or Yahoo”

Insert.

Ivan
Pictet.Banker.

Monty
Raphael.Q.C.

Ivan Pictet/Monty
Raphael.

Update
— March. 2014.

Pictet
& Cie Bank —- List of Crimes.

1996 —–
F.S.A— Breach in London.

2003 —– F.S.A.
— States rogues operating in Pictet’s London office. Ivan Pictet
states that documents
were forgeries but were later proved to be genuine in the British
Courts. He had documents destroyed in their London office –hoping to
hide the crimes.

2007
.- – – The Securities and Exchange Surveillance issued a
recommendation that the Prime Minister and The Commissioner of
the FSA to take disciplinary action against Pictet Asset Management –
Japan Ltd.

2008
.– Dec. – Pictet Bank state – ” We have never chosen
any funds linked to Madoff.

held
in Swiss banks – $18 million held in 5 accounts at Pictet &
Cie. Bank. Bahamas.

Ironically
the Pictet & Cie.Bank partners are bigger criminals than the
criminals who have accounts in the their bank.

The
bank is now seeking to re-structure — to cut the partners liability
– hoping to off load their decades of criminal responsibilty –
and move onwards to carry out new crimes. The Germans are right —
the bankers should go to prison if found guilty of financial crimes..

Both Ivan Pictet
and Monty Raphael.Q.C. conspired to withhold crucial documents
requested by the High Court – the FSA — and the Police Fraud
Squad.

Written
Parliamentary Questions received by the table office ..

(1) To ask the
secretary of state what steps he is taking to ensure that Swiss Banks
such as Pictet & Cie do not evade criminal prosecution under EU
law even when the illegal act is committed by a London based
subsidiary.

(2)To ask the
secretary of state what steps he is taking to protect the rights of
UK citizens who seek redress following criminal activities by Swiss
banks with subsidiary offices located in London.

Quote.
( America’s Top Lawyer .)

You can be
the richest man in the world with the best lawyers that money can buy
but you cannot win against a man who has got nothing left to lose and
is telling the truth.

*** We
note that there has been a sharp increase in Peters & Peters
partners leaving to go to other practices. Moving does not alleviate
them of any responsibility from any illegalities that may have
occurred at Peters & Peters during their partnership tenure. From
1999 onwards.

The consensus of
opinion is the Pictet & Cie should be prosecuted , and that their
U.K. banking licence should be taken away.

Their Solicitors at
Peters & Peters .London “ struck off and prosecuted..”

*** Started
campaign — June 6th.2008.

5years —- approx
10 .5 million e-mails – – – but still no writs, injunctions or
threats of litigation – – – WHY – – – because it is all true.

*** . The
bigger they are — the harder they fall.!!!
In America —- they would have
all been in prison for the last seven years.

Feb 2013,—
Pictet & Cie Bank Partners remove their unlimited liability.They
realise that all their personal wealth is at risk , the people they
have conned might want their money back.

Full Story.***

. ” Google ”
or ” Yahoo” .

Insert– ( Charles
Pictet. Banker.

Insert– ( Ivan
Pictet.Banker.

Insert– ( Jacques
de Saussure.Banker.

Insert– ( Nicolas
Pictet. Banker.

Insert– (
Jean-Francois Demole.Banker.

Insert — (
Philippe Bertherat. Banker.

Insert– ( Renaud
de Planta. Banker.

Update.
March. 2014.

Over
the last three years we posted the following on hundreds of sites .
—

***
Were currently waiting for the West Yorkshire Police ;-

Chief
Constable . Sir Norman Bettison

Forces
Solicitor. Mike Percival.

Head
of Economic Crime Unit. Det Chief Inspector. Steven Taylor.

-to
see if they continue to cover up this case like the FSA. – “
watch this space.”

****
We can now state that all the above have been removed from their
posts. All three facing criminal allegations.

****
These three senior police officials assisted in covering up the
crimes carried out by Pictet & Cie Bank and it’s lawyers.

Swiss Bank
Accounts. 2014.

Is your monies safe
in these accounts —- definitely NOT.

Would you get your
money back if every body decided to withdraw all their accounts –
NO WAY.

Economic Experts
say that there would only enough money to repay 50% of their clients.

Are you going to be
in the 50% — that loose your money.– Get it out NOW.

2012 — – June.
— Published in Anglo INFO .Geneva.— USA Trust Fund Investors were
sent false and fraudulent documents by Pictet Bank.Switzerland. in
order to collect large fees. ( Like MADOFF) —Even after the SEC in
the USA uncovered the fraud Pictet continued to charge fees and drain
whatever was left in these accounts. Estimated that $90,000,000
million lost in this Pictet Ponzi scheme.

All
the fines that crooked Swiss banks have incurred in the last few
years exceeds £75.Billion.

It
is also calculated that the secrecy ” agreements” with
regards to tax evation by their clients will cost the banks another
£450 Billion.( paid out of your monies.)

The
banks are panicking — the are quickly restructuring their banks
—- from partnerships —

to
” LIMITED COMPANIES.” —– this will probably mean that
in the future — they could

pay
you only 10% of your monies ” if you are one of the lucky ones”
—- and it be legal.

jack loach

Sods —–
Law.

Dec.—-
2014.

For almost two
decades we have strived to get justice for the injustice we have
suffered at the hands of a world renowned bank— PICTET & CIE.
BANK.

Two yorkshiremen
both running their own small family businesses trying to resolve the
problem by taking all the correct legal procedures to recover their
monies.

The matter was
raised in Parliament – twice– the FSA investigated the matter
concluding that PICTET had rogues operating in their London Bank —
but the rogues had left —saying no one left to prosecute.??? —–
so there.

We then
approached the Financial Ombudsman Service. (FOS) — our case was
dealt with by seven different people —- then our numerous E-Mails
were ignored — nobody would speak to us ——-so there.

We then asked the
SFO ( Serious Fraud Office.) to investigate our case —- the
criteria of our case ticked all their boxes. — we were instructed
not to send them

any
documents/evidence.—— in fact they wrote to us advising us to go
to the Citizen’s Advice Bureau.(CAB.)

Richard Alderman
the SFO boss —- who responded to our letter was the same man who
would not investigate the “ Madoff” scandal or the “Libor”
fiasco.

The MP’s
committee —- said he was sloppy— and the SFO was run like “
Fred Karno’s Circus” —– it was an office of fraud.—– so
there.

Our M.P.
approached our local Chief Constable to investigate—– he was
called—- Sir Norman Bettison— Chief Constable of West Yorkshire
Police —- a force that made “ Dad’s Army” look like the S.A.S.
They were inept – corrupt —malicious — from top to bottom. We
were criminally dealt with by the Forces Solicitor—- the Head of
the Economic Crime Unit —-and the Chief Constable —– so there.

We were then
advised to pass our complaint against West Yorkshire Police to the
I.P.C.C. – which we did — they advised us to make our complaint
to —- the West Yorkshire Police — we did with reluctance — all
we got was abuse and obfuscation. —– so there.

Sir Norman
Bettison —- The Forces solicitor— and the Head of the Economic
Crime —- have all been removed from their posts and facing criminal
allegations.

—— so there.

We even sought
justice through the Courts — culminating in a visit to the Court of
Appeal-London.— On leaving the Courts of Appeal that day our
barrister a “rising star” informed us — that if that was
British Justice then you can keep it. He quit the law and moved to
Canada —– so there.

A few years later
we learned that one of the judges ( Lord Justice.) in our case at the
Court of Appeal was related to a senior executive of the Pictet Bank
—–so there.

The Ministry of
Justice passed our case to Lord Myners to investigate — we would
rather have had Mickey Mouse or Donald Duck do it. — to this day we
don’t know

—whether he did
anything or not —- probably not — seeing that his wife was on the
Pictet Prix Board.

Pictet & Cie
.Bank — voted private bank of the year 2013.

Ivan Pictet —-
Voted banker of the year 2012. —- the senior partner — lied on
numerous occasions and had documents destroyed — also said genuine
documents were forgeries. —– so there.

Ivan Pictet in
Oct. 2013 —- Given the Legion of Honour — but saying that —-
honours were given to Hitler — Eichmann — Mussolini —Franco
— he’s in fitting company. —-so there.